China’s growth rises to 4.5% as AI demand supports exports

China’s economy grew 4.5% in the third quarter, up from 4.3% in the previous quarter but below its 5% growth in the first quarter.

The rebound followed a three-year low, but the result was at the bottom of Beijing’s annual target of 4.5% to 5%.

Demand for AI data-centre components helped lift exports, easing pressure on the world’s second-largest economy.

Exports have offset weak spending at home, where a property slump, weak wage growth and high youth unemployment have weighed on consumers.

China’s trade surplus is on track to exceed last year’s record of $1.2tn, the gap between what it sells abroad and buys from other countries.

Trade tensions and uncertainty over AI investments cloud the outlook, as Western economies push back against cheap Chinese goods and investors question whether AI spending will generate profits.

Beijing has introduced support measures, including lower interest rates for some businesses and subsidies for property buyers, to try to boost the economy.